PFA finalized $3.65 million sale of King’s Alley Hotel and adjoining property in Christiansted

Gov. Albert Bryan Jr., acting as chairman of the Virgin Islands Public Finance Authority board, signed documents on March 22, 2022, finalizing the $3.65 million sale of the King’s Alley Hotel and an adjoining property in Christiansted to Neighborhood Establishment.

According to Government House, the developer planned to combine the renovated King’s Alley Hotel with the King Christian Hotel. The project was projected to include more than 100 hotel rooms, eight food, beverage and retail outlets, event space, a pool, a courtyard, 27 parking spaces and two boat docks for more than 20 vessels.

Government House said renovations to the King Christian and King’s Alley hotels were estimated to generate 150 construction jobs and 100 full-time positions.

The King’s Alley Hotel had been operated by King’s Alley Management Inc., a wholly owned subsidiary of the Public Finance Authority, after the authority acquired the property through foreclosure. Government House said the adjoining Anchor Inn property, a vacant lot with historical structures, was acquired by the authority in 2011 for $614,000.

Both properties were appraised in 2019 at a combined $3.564 million, with King’s Alley valued at $2.95 million and Anchor Inn at $614,000. After a market study, the Public Finance Authority issued a solicitation for proposals in June 2021 to 18 companies and individuals that had expressed interest in buying or leasing the properties.

The authority received one proposal, from Neighborhood Establishment, for the purchase of both properties. Government House said the proposal was reviewed by a committee that included a financial adviser and a hospitality industry professional.

Government House also said Neighborhood Establishment transitioned all employees from King’s Alley Management Inc. to the company at the same or higher salary, with additional benefits.

Official source: https://www.vi.gov/governor-bryan-closes-sale-of-kings-alley-hotel-to-development-group-for-christiansted-boardwalk-enhancement/